Mon, Sep 23, 8:03 PM (89 days ago)
Arax Holdings Corp. reported significant financial challenges for the quarter ending July 31, 2024, compared to the same period in 2023. Revenue plummeted to $0 from $228,518, primarily due to project delays. For the nine-month period, revenue decreased 23% to $528,636. Operating expenses were substantially reduced by 77% to $1.3 million, driven by lower general and administrative costs and stock-based compensation. The net loss narrowed to $433,266 for the quarter, down from $2.3 million, and $906,000 for the nine months compared to $5.1 million the previous year. Cash flow from operations showed improvement, with $470,000 used in operations versus $3.7 million in 2023. However, the company faces liquidity issues, requiring additional financing to sustain operations. Management expressed substantial doubt about the company's ability to continue as a going concern without raising capital. The company’s financial health is further complicated by material weaknesses in internal controls and a lack of independent oversight. Future operations depend heavily on successful capital raising and the completion of ongoing projects.